The team behind the recent controversial “governance attack” on Compound Finance has agreed to withdraw their contentious proposal in favor of a new one.
On July 28, the “Golden Boys” voting bloc narrowly passed Proposal 289, despite significant community opposition. This proposal aimed to create a wrapped “goldCOMP” token and a treasury using 499,000 COMP tokens—worth about $25 million—to provide passive income for COMP holders. However, it gave the Golden Boys considerable control over how the funds could be invested, sparking accusations of a governance attack.
By July 30, a member of the Golden Boys, known as “Humpy,” agreed to retract the controversial proposal in exchange for a new plan. Bryan Colligan, CEO of AlphaGrowth and a member of Compound’s growth team, announced that Humpy had requested the new proposal.
The revised proposal introduces a staking product that aligns with the Golden Boys’ interests while maintaining the integrity of Compound DAO governance. It suggests allocating 30% of both current and future market reserves to COMP stakers based on their stake amounts.
Colligan noted, “The Compound Growth Program, with support from key delegates in the Compound community, will proceed with this new plan following the immediate cancellation of Proposal 289.”
In response, Humpy commented on the new proposal, saying, “I fully approve this message.”
Major Compound stakeholders, including blockchain service providers Gauntlet and WintermuteGovernance, have expressed support for exploring the new staking product. They stated, “We support exploring a Compound staking product.”
Consensys also welcomed the resolution, appreciating the efforts of all delegates in addressing the issue.
Following these developments, the price of COMP, the native token of the DeFi protocol, rebounded by 6% over the past 12 hours, trading at $51.55 according to CoinGecko. Despite this, COMP remains down approximately 94% from its all-time high of $910 reached in May 2021.
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